19th Jan 2006 07:05
St. James's Place Capital PLC19 January 2006 19 January 2006 Release of Provisions St. James's Place Capital plc ("SJPC"), the wealth management group, todayannounces its intention to release certain accounting provisions. Enquiries: Andrew Croft, Group Finance Director Tel: 020 7514 1985 Nitya Bolam, Brunswick Tel: 020 7404 5959 St. James's Place Capital plc ("SJPC") announces its intention to releasecertain accounting provisions in the full year profit for the year ended31 December 2005 as detailed below: (i) VAT provision A provision of £4.0 million is being held against the potential impact of adecision in the European Court of Justice relating to the VAT exemption forinsurance related services. The adoption of legislative changes to implement the Court's decision hasrecently been postponed on the advice of the European Commission pending an EUreview of VAT in the wider financial services sector. In accordance with accounting practice the provision is no longer appropriateand will therefore be released. (ii) Disposal of Life Assurance Holding Corporation ("LAHC") warranty provision On 24 August 2004 SJPC disposed of its holding in LAHC. At the time of thedisposal a provision of £16.5 million was established against possible claimsunder the transaction warranties and indemnities. Following a review of the remaining potential liability the Board consider thatthe provision should be reduced to £7.0 million. Accordingly £9.5 million of theprovision is no longer required and will be released. The release of these provisions will positively impact both the InternationalFinancial Reporting and the European Embedded Value profit for the year ended31 December 2005. These figures are expected to be released on 28 February 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
St James's Place